The metal gave up nearly a point of its value on Monday, starting the day at Rs 1.42 lakh for 10 grams and making room for some deals from wedding shoppers. You see the kind of uneven drop in the big cities as investors re-evaluate their positions given the risks, the price of oil and rates that won’t budge.
What moved the market today
There was an over 1% drop in global gold on Monday after the Strait of Hormuz made headlines and sent oil higher. On top of that, traders have been factoring in high interest rates and the run-up in hostilities between the US and Iran.
Even though one might turn to gold when there is inflation, stiffer rates have a way of putting a damper on it. The mood is tentative, with eyes on how things play out for bullion.
Here is where the per-gram figures stand for the country: 24 karat (99.9%) at Rs 14,291, 22 karat (91.6%) at Rs 13,100, and 18 karat (75%) at Rs 10,718.
City prices: metros and beyond
Monday’s sticker prices were a mixed bag, depending on the local tax, logistics and what the market can bear. Even with the national number softening, spreads in the metros were only so much.
Delhi, Mumbai, Kolkata, Chennai
In Delhi, the going rate for 24K, 22K and 18K came in at Rs 14,306, Rs 13,115 and Rs 10,733. In Mumbai and Kolkata, you will find them at Rs 14,291, Rs 13,100 and Rs 10,718 for the three purities.
Chennai is a bit more expensive, at Rs 14,400 for 24K, Rs 13,200 for 22K and Rs 11,020 for 18K per gram.
Other key markets
Bangalore, Hyderabad, Kerala and Pune are in line with Mumbai: Rs 14,291, Rs 13,100 and Rs 10,718. In Vadodara and Ahmedabad, the numbers are Rs 14,296, Rs 13,105 and Rs 10,723.
Then you have Jaipur and Lucknow at Rs 14,447, Rs 13,244 and Rs 10,839. Coimbatore and Madurai are at the top of the range for the day with Rs 14,508, Rs 13,299 and Rs 11,119.
Vijayawada, Bhubaneswar and Nagpur come in at Rs 14,432, Rs 13,229 and Rs 10,824. Patna and Surat are at Rs 14,437, Rs 13,234 and Rs 10,829, and Chandigarh is at par with the Rs 14,447, Rs 13,244 and Rs 10,839 marks.
Why this matters for buyers and jewellers
A lower number means less of a premium for the retail side, but the macro picture is still up and down. For jewellers, the quotes are in flux as wholesale costs get whipsawed by what is happening overseas, not to mention the inflation from oil.
Some notes from Monday:
– The 24K benchmark is set at Rs 14,291 per gram
– Open was down in the neighborhood of 1 percent
– There is a fair amount of variance in the city numbers
– Worth to look around before making a move
Silver snapshot and what to watch next
Silver is at Rs 234.90 a gram or Rs 2,34,900 for a kilo. It is not as dear as gold, but it has its own volatility, tied in to the kind of demand you see in industry.
With the situation in West Asia, the analysts are pointing to oil, inflation and rate calls as what will be moving the needle. Most in the trade would rather sit on the sidelines and watch for now than put on any gold or silver.
For anyone with a purchase in mind, the difference from one city to the next is no small matter. A quick look at the live 24K, 22K and 18K in the area before going to the shop can put some rupees back in the pocket on a day like this.
